4. South American currency crisis

[1] Starting heat exchanger production

GM, Ford, and Volkswagen were all early entrants into the Brazilian market, followed by Toyota Motor Co., Ltd (now Toyota Motor Corporation) in 1958. Honda Motor, Mitsubishi Motors, Renault and Peugeot arrived later in the 1990s as trade liberalization advanced and inflation came to an end.
Once plagued by hyperinflation, the South American economy underwent major changes in the mid-1990s. In 1991, Argentina pegged its currency to the U.S. dollar, as did Brazil in 1994 along with its introduction of the real (BRL) as its new currency. In addition, MERCOSUR was launched in 1995 as a means of creating a common economic zone in South America.
As expectations for economic growth escalated, Toyota Motor entered the Argentinian market in 1996 (TASA), where it began producing the Toyota HILUX. It began producing the Toyota Corolla in Brazil (TDB) the following year in 1998. Similarly, Honda Motor started producing four-wheeled vehicles in Brazil in 1997.
In addition to the aforementioned expansion into Argentina, DENSO also conducted preliminary studies on the profitability and feasibility of local production for evaporators, radiators, condensers, and other types of heat exchangers for which broader demand was anticipated, with DNBR starting production in 1999.